Premium for one call contract

Assignment Help Other Subject
Reference no: EM133233456

Roland purchased 30 European call contracts on stock BEAM. The contracts each have a strike price of 135 and expiration time of 15 months. The initial stock price was 125, and the stock price was 150 at expiration. With a risk-free rate of 0.05, Roland's total profit was 100. What was the premium (initial investment) for one call contract? Round your response to two decimal places.

Reference no: EM133233456

Questions Cloud

Compute today arbitrage-free price of a cash-or-nothing : A binary option (also called digital option) is an exotic option for which the payoff at maturity to the holder of the option is either some US dollar amount or
Rise for strategy b to be more profitable : The current price of XYZ stock is $55, and two-month European call options with a strike price of $56 currently sell for $11. As a financial analyst at Merrill
Explain the six parts of the financial system : One problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Explain
Explain superior stock selector last year : Russo and Ruby both work as fund managers with AARK Capital. Russo manages an indexed share portfolio where as Ruby is the fund manager of an actively managed s
Premium for one call contract : Roland purchased 30 European call contracts on stock BEAM. The contracts each have a strike price of 135 and expiration time of 15 months.
Calculate annual spending of margaret for use of atm : Margaret uses an ATM three times a week. It is not her bank's machine, but it is convenient to the store where she works part-time. For every transaction, Marga
What is the project present value : A company makes an initial $10,000 investment in a project. This project is projected to earn $8000 in year one, $10,000 in year 2, $12,000 in year 3, and $20,0
What is the market price of the bond : The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8 percent yield to maturity, due to mature 15 years from today (assume semi
What is the npv : After spending $3 million on research, Better Mousetraps has developed a new trap. The project requires an initial investment in plant and equipment of $6 milli

Reviews

Write a Review

Other Subject Questions & Answers

  What are the main recommendations given on the report

Health Resources and Services Administration (HRSA) is the primary federal agency for improving access to healthcare by strengthening the healthcare workforce.

  Evaluate and perform ethics audit

Evaluate and perform an "Ethics Audit" using the following expectations. Are they narrowly written or extremely focused?

  BSS058-6 Strategy and the Global Competitive Environment

BSS058-6 Strategy and the Global Competitive Environment Assignment Help and Solution - University of Bedfordshire, UK - Assessment Writing Service

  Describe one example of a controversial expectation

The various groups who make up the US public have different expectations of science. How do these differing expectations of science affect the ways groups.

  Describe the quality performance tools that may be used

Describe the quality performance tools that may be used to demonstrate that the care and treatment rendered are both cost-efficient and of high quality.

  Discuss barriers to be improving men health

Identify and discuss the major indicators of men's health status. Mention and discuss barriers to be improving men's health. Mention and discuss factors that.

  Conduct needs assessment as well as develop the fundamentals

Human services professionals can strive to achieve and/or support social change, leadership, or advocacy-related goals by creating a strategic plan.

  Explains how technology has affected the communication

Explains how technology has affected the communication capabilities of specialized databases in the criminal justice system

  How effective the profiling must be to remain justified

Discuss/debate with your classmates about the early history of criminal theory and its application to crime control i.e., Positivist School vs. Classical School

  Define technology and information resource to research issue

Use at least three (3) quality resources as references for the assignment and document your sources using APA Style for in-text citations and references.

  Transitioning into my blueprint for my paper

I need help into transitioning into my blueprint for my paper I was wondering if someone could help me give me some ideas and pointers, edit if you see a problem. Thank you so much this is what I have so far:

  Discussion about the protection team role

Presentation of speech and preside over shareholder's meeting at hotel ballroom and catered luncheon with shareholders at hotel restaurant.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd